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November 16, 2005
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- 2005 Copyright & |
Locating its headquarters in Franklin, 15 miles southwest of Nashville, will allow much closer collaboration with Nissan’s manufacturing, purchasing, product quality and supply chain management functions based 30 minutes away in Smyrna, Tenn., where the company has a $2.1 billion vehicle assembly plant and 6,700 employees. Another 1,300 employees work at the powertrain assembly plant in Decherd, Tenn. Citing reasons behind the relocation decision, Mr. Ghosn mentioned the lower costs of doing business in Tennessee; the favorable business and taxation climate that exists in the state; the potential to improve operational efficiencies among its North American functions; and Tennessee’s central location. For employees, the relocation is expected to create more operational synergies and nurture employees’ creativity and innovation. By bringing California headquarters and manufacturing functions closer together, there is a potential for higher levels of cross-functional involvement and better communication.
Plans for the new headquarters facility are not yet finalized, but the capital investment is expected to be $70 million. The building will be designed to accommodate the current headquarters campus, future new hires, and some employees now working in other Nissan facilities in North America. Construction of the new building is expected to begin in 2006, and the facility would be completed in 2008. California-based employees will begin to move to Tennessee in mid-June 2006 and will work in temporary facilities in the Bell South building in downtown Nashville until the headquarters is completed. (Nov. 10, 2005)
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